Italy being an EU member state falls under the EU VAT regime. Member states must adopt EU VAT Directives into their own legislation.
Standard VAT Rate: 22%
Reduced VAT Rate: 4%, 10%
Registration Threshold Distance Selling: 35,000 €
EU VAT number format: IT99999999999
Resident - There is no registration threshold
Non resident - There is no registration threshold
IC Acquisitions -EUR 10,000
Where a non-resident business has a permanent establishment in Italy, it must be VAT registered in Italy.
Moreover, in case of permanent establishment, no other registration for VAT purposes is possible for non-resident entities.
Detailed rules regulate reporting requirements of Italian transactions for Value Added Tax purposes. These include: invoice requirements, timeliness for an invoice to be issued, invoice and credit notes corrections rules, foreign currency reporting requirements and exchange rate sources, correction of previously submitted returns and accounting records that must be maintained for VAT purposes.